DEFINITION of 'Defect Of Record'

A public record outlining any encumbrance on a piece of property, such as a lien, mortgage or easement. An encumbrance refers to a claim or restriction on a certain property that can prevent the transfer of the title.

BREAKING DOWN 'Defect Of Record'

Because the defect of record is available to the public, potential homeowners should check to see if the property they are looking has any outstanding debt or legal claims on it. A homeowner may also want to view the defect of record to see if it is clear, especially if the homeowner wants to place the property on the market.

RELATED TERMS
  1. Encumbrance

    A claim against a property by a party that is not the owner. ...
  2. Abstract Of Title

    A brief history of the titles for a piece of land. The abstract ...
  3. Easement In Gross

    An easement that attaches a particular right to an individual ...
  4. Property Lien

    A property lien is a legal claim on a tract of real estate granting ...
  5. Unencumbered

    An asset or property that is free and clear of any encumbrances ...
  6. Construction Lien

    A claim made against a property by a contractor or other professional ...
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